Internet America Announces First Quarter Financial Results

Internet America, Inc. (www.internetamerica.com) announced results for its first fiscal quarter ending September 30, 2005. Results for the quarter included EBITDA (earnings before interest, taxes, depreciation and amortization) of $330,000 versus $294,000 for the same period in 2004 on net income of $109,000 versus $238,000 for the same period in 2004.

The Company reported first quarter revenue of $2.6 million compared to $2.5 million for the quarter ended September 30, 2004. Internet Americas subscriber count was 51,000 at September 30, 2005 compared to 58,000 at September 30, 2004.

Billy Ladin, CEO of Internet America said, Our results, especially the improvement in EBITDA, are an indication of the Companys transition to its strategy of providing wireless Internet access services to under-served and non-served markets in rural areas through internal growth in existing markets, acquisitions and new market development. We continue to be cautiously optimistic that the execution of this strategy will provide desirable results for the Company.

Internet America is a leading Internet service provider primarily serving the Texas market. Based in Dallas, Internet America offers businesses and individuals a wide array of Internet services including broadband Internet delivered wirelessly and over DSL, dedicated high-speed access, web hosting, and dial-up Internet access.